cold calling

Cold Calling

By Frank J. Rumbauskas, Jr.

Author of the best-seller Cold Calling Is A

Waste Of Time: Sales Success In The Information Age

www.NeverColdCall.com

Send This Book to a Friend!

http://www.nevercoldcall.com/?ebookhttp://www.1shoppingcart.com/app/tellafriend.asp?preview=1&MerchantID=44902

2

You may distribute this e-book freely, sell it, or include it as

part of a package as long as it is left completely intact and unchanged and delivered via

this PDF file.

This free-distribution e-book is Copyright 2005-2006 by Frank J. Rumbauskas, Jr. and

FJR Advisors, LLC. All Rights Reserved.

ISBN 0-9765163-2-2

Published and distributed by: FJR Advisors, LLC

20701 N. Scottsdale Rd., Suite C5-290 Scottsdale, AZ 85255

United States of America

To subscribe to the authors free weekly newsletter, please visit:


http://www.nevercoldcall.com/?ebook

3

What people are saying about Cold Calling Is A Waste Of Time: Sales Success In The

Information Age:

I cant begin to tell you what a difference your book has made in my business! After implementing just a few of your techniques I went from signing 5-8 clients per month to signing 16-20. When I finally caught my breath I tried some of your other tips and last month alone added over 100 new clients! I cant wait to see what your next book has in store for me! Thank you, Thank you, Thank you! - Kathy Harper, United BankCard I am using several of the marketing techniques and getting good results. I look forward to developing more of the ideas. The marketing ideas shared in this program are worth a fortune. No question this is the best marketing program in the world. I have spent thousands of dollars on motivational and sales programs over my 20-year sales career and never have I found something this simple and effective to market my service. I look forward to never cold calling again. Thank you for helping revive my sales career. -Robert L. Powers, Director of Sales, HDS-Health Data Services You have no idea how grateful I am that finally someone had the will and power to visualize and act on what it has been a long, stressful and difficult career (for us salesmen). I have purchased your book around a month ago, after a long period of deep thought hoping it wasn't another scam that promises heaven and earth in one day. Every single word that you said was true! I STRONGLY RECOMMEND YOUR BOOK TO EVERYONE INVOLVED IN ANY KIND OF SALES. I still listen every single week in our "sales quota follow up meeting" that we have to increase our phone time, that we need to increase our sales calls and it seems like the harder you work the less profitable it becomes. I started to implement two of the strategies that you suggest in your book and my results in exactly one month are starting to show up. I thank you once again for the eye opening opportunity and please keep us motivated to put in practice any other strategy of yours. -Luis Fernandez, Orlando, FL

4

I just wanted to say "Thanks" for your program. By implementing your principles, I haven't had to make a Cold Call in almost 2 years! I have set up an incredible group of my industry specific professionals to network with and my phone doesn't quit ringing. I start each day now trying to figure out how to fit all of the appointments into one day. I am 140% for my year and I have already qualified for my company's Presidents Club. Next year I plan on putting other systems in place so that I can process more orders. If there is anyone out there who doesn't understand the value of your system they are brain dead. Thanks again. You are the man! -Chris Simmons, TelePacific Communications, Las Vegas My interpretation of your program is that most sales people need a marketing program. From my research and work with clients I see one key reason being that most marketing departments are unable to supply sales people with a consistent flow of quality leads. I think your advice is extremely practical and important for 95% of the sales people out there (myself included as a small business owner) who cannot rely on their marketing department to supply the leads they need to fill their sales funnel. In the real world of sales "self-sufficiency" is certainly the way to go. I commend you for pointing this out!" -Nigel Edelshain, Business Owner & Wharton MBA

To learn more about Cold Calling Is A Waste Of Time: Sales Success In The

Information Age, please visit:




5

Table of Contents

I. Introduction 6

II. Cold Calling Facts 11

III. The Truth about Cold Calling 17

IV. Why Cold Calling Is Dead 24

V. The Hidden Cost of Cold 28 Calling

VI. How to Stop Chasing 32 Prospects Forever!

VII. Increase Your Sales Today 40 with The KISS Test

VIII. The Cold Calling Conspiracy 44

IX. Conflict vs. Cooperation 47 in Selling

X. Why Funnels & Forecasts 51 Are Absolutely Worthless

XI. If Cold Calling Works For You 54

XII. If No Cold Calling, Whats 58 The Alternative?

XIII. Conclusion 63

6

I.

Introduction

7

Introduction

I know what youre thinking why is an already successful author distributing a book for free? Heres the answer: Im doing it in response to the endless and ridiculous criticism and resistance my never cold call message constantly receives from the old-school, pro-cold calling crowd. And, if youre wondering why Im so passionate about spreading the message that cold calling is a waste of time, Ill explain that as well. But in order to do so, Ill need to tell you how my best-selling book & CD course, Cold Calling Is A Waste Of Time: Sales Success In The Information Age, (www.nevercoldcall.com) came to be. It was early 2003 and I was still in sales and doing very well at it. When I started early on, I received the typical canned sales training from my employers, which was to generate leads through cold calling. Obviously it didnt work. To make a long story short, I spent several years jumping from job to job because I couldnt make my numbers with cold calling alone. However, during those few years, I continually tried new and different methods of generating leads with no cold calling. Over time I developed a complete system of lead-


8

generation that enabled me to consistently blow out my quota without any cold calling, ever. I nicknamed my prospecting system self-marketing. Getting back to 2003, I was still a top producer in sales but simply wanted a change. Id been selling for too long and had no desire at all to get into sales management. Ive always had a strong entrepreneurial drive and decided to put my prospecting system in writing and have a try at selling it online. I sat at my computer from a Friday afternoon through Sunday evening with no sleep at all and put my system on paper. Over the next week I recorded two full-length audio CDs to go along with the book. I set up a website and hoped someone would buy it, and didnt expect anything more than to make some extra money each month in addition to the income from my regular job. I was shocked when my book and CD set, which I aptly named Cold Calling Is A Waste Of Time: Sales Success In The Information Age, literally became an overnight sensation. I knew the need for it existed, but I didnt expect anything like this! I quit my job less than two months later, and the only reason I waited even that long was to make sure the huge book sales I was enjoying werent just a fluke. Sure enough, it continued. In fact, sales of that program have

9

continued to climb month after month, and continue to do so today at the time of this writing, sales are at an all-time high. (I update the program on a regular basis to keep it fresh with new prospecting ideas.) As you might imagine, the program wasnt just a sensation in terms of sales numbers. It has generated a flood of opinions, on both sides of the matter, as well as numerous copycat artists attempting to sell their own no cold calling programs. While there are plenty of people who agree with me that cold calling is now obsolete, the most heated and angry opinions come from those who still support the idea of cold calling. Most of these people are the old-school types I mentioned, the stereotypical dictator sales managers who order their salespeople to make no less than fifty calls per day and to document those calls by bringing business cards back to the office at the end of the day or by turning in call logs. These old-school dictator managers who contact my office to voice their opinions arent just passionate about their belief that cold calling is the only way to go. Theyre downright furious that Ive spread the message that cold calling is dead all over the world (my program now sells in over thirty countries). They insist that Im wrong. After all, there

10

CANT be any other way to generate business than cold calling! To a lesser extent, I hear from salespeople who insist that theyre doing great with cold calling. Not surprisingly, however, none of them can document their claims with sales reports or actual numbers. Having said that, Im sure some salespeople out there are actually succeeding by cold calling. If you are one of them, I ask you to go to the chapter entitled, If Cold Calling Works For You, before reading anything else in this book. As I became more well-known and my program continued to sell, I decided that my mission in all this is to save the world from the perils of cold calling. Im out to save salespeople from the horrors of having to endure the miserable activity of cold calling day in and day out, and Im also aiming to save customers from the hassle and annoyance of being cold called all the time. As a business owner, I hate receiving cold calls, and as a consumer, I hate when strangers call my home phone trying to sell me something. I hate having people come up to me in public or in the mall trying to sell me something. Ive never met anyone who doesnt hate it. And therefore I aim to spread the message that cold calling is dead. New, better, and far more powerful ways to get leads now exist. Were in

11

the Information Age, people. No more cold calling. Ever. I hope you enjoy reading this book and, if you still believe in cold calling, that you will keep your mind open to the ideas I present herein. If youd like to read more and to stay up-to-date on my latest thoughts and ideas, please visit my blog on a regular basis. You can find it at: nevercoldcall.typepad.com. While youre there you can also subscribe to my free e-mail newsletter. Thank you for taking the time to read this, and please pass it along to anyone and everyone you wish. Lets work together to rid the world of the horrors of cold calling! Frank J. Rumbauskas, Jr. Phoenix, Arizona November, 2005

http://nevercoldcall.typepad.com

12

II.

Cold Calling Facts

13

Cold Calling Facts

In business, as in all areas of life, ideas come and go. What worked yesterday doesnt work today and probably wont work tomorrow. Lets take a look at other areas of life. A century ago, the horse-drawn carriage was the transportation of choice. Then came Henry Ford and his invention of the automobile. For many years after, cars were the exclusive luxury of the rich. Then Mr. Ford introduced the Model T, and cars were suddenly available to the masses. Walter P. Chrysler came along and introduced his improved version of the automobile. General Motors established itself as the third of the big three and automotive technology advanced. Today we still have the big three as well as other brands from around the world ranging from low-cost economy cars to premium, high-tech ultra luxury cars. I used the automotive industry as an example to point out the process of evolution, and why yesterdays ideas are no longer acceptable today. Who uses a horse-drawn carriage anymore, other than as a tourist attraction? When is the last time you saw a Model T on the highway? You havent, of course, because the Model T was built for the

14

roads of the twenties and cannot keep up today. Why, then, does anyone think that cold calling, designed, like the Model T, for the era of the twenties, can possibly work with good results in todays world? The reality is that it cannot. Cold calling, for years and years, was the preferred method of generating new business for practically all companies and salespeople worldwide. However, it has literally been decades since it has led in terms of results. In spite of this, sales managers in nearly all companies, large and small, continue to demand that their salespeople spend their productive time cold calling instead of doing things that will actually bring them face-to-face with qualified prospects in an efficient manner. Any time sales are down, those dreaded words, cold call more and you need to increase your activity, or the equally terrifying, your activity isnt there, are heard from countless sales managers, regional directors, sales vice presidents, and even old-school CEOs. Millions of salespeople have been mistrained and misled by otherwise well-meaning (and sometimes not so well-meaning) corporate trainers, sales managers, and dozens of sales authors. There are literally hundreds of books available that advocate cold

15

calling as if it were the holy grail of sales. Salespeople, meanwhile, continue to bang their heads against the wall, wasting hour after hour, day after day, month after month, and year after year cold calling with dismal results. However, the mistaken belief that cold calling works has been so frequently drilled into the minds of most salespeople that they continue to do it, believing that with time, it will somehow magically lead to success. The truth is that the effectiveness of cold calling went by the wayside as our society slowly but surely moved out of the old Industrial Age and into the new Information Age. Historians symbolically mark the end of the Industrial Age and the beginning of the Information Age with the fall of the Berlin Wall in 1989. Especially now in our current time of slower economic growth and more controls on spending, cold calling is by far the least efficient way to find new business and, in this bold new economy, the result in many cases is literally zero. As cold calling continues to fail and results diminish, otherwise talented salespeople whove simply been mistrained find themselves on probation or out of a job and their employers lose hundreds of thousands of dollars in terms of lost revenue and very high turnover in the sales department.

16

The good no, great news in all of this is that there are dozens of better ways to prospect for new business than cold calling. Salespeople who have successfully moved over to self-marketing have doubled and tripled their sales production while actually reducing their working hours. Have you ever noticed how, in most sales organizations, the superstar top producers who blow out their quotas by huge margins each and every month seem to take it easy and dont cold call, while the sales reps who struggle to get by, barely making quota if at all, must work hard and spend time cold calling? The superstars are usually accused of being fed all the good leads or of being in cahoots with the boss. In reality, however, theyre utilizing Information Age methods of attracting highly qualified, ready-to-buy prospects to them. Theyre attracting business instead of begging for business.

17

III.

The Truth About Cold Calling

18

The Truth About Cold Calling

While the old-school line of sales managers and trainers continue to insist that cold calling is the only way to succeed, the reasons why cold calling has become obsolete and is no longer a viable option to generate new business are many. Following are some of the key reasons why cold calling should be banned by any and all sales organizations that wish to succeed (in fact, it has been banned by many extremely successful sales organizations):

Cold calling destroys your status as a business equal and makes you look like a beggar. When you approach a prospect in a cold call situation, its readily apparent to the prospect and everyone else involved that you need them and their business but that they dont need you. The prospect is instantly placed in a position of power and superiority over you. Even if your company is a business equal or superior, you are perceived as needy and inferior by the prospect. As all negotiating experts explain, perception is everything. Even if you have power, if you are perceived as not having it, you dont

19

have it.

Cold calling limits production and wastes time. Heres an example of the typical sales training activity model: Take your quota and divide it by the average dollar amount per sale to determine how many sales you need each month. Then multiply that by the number of proposals you need to present to get one sale. Then multiply that by the number of appointments you need to have to get to a proposal, and multiply that by the number of cold calls necessary to get an appointment. Divide by twenty, and thats how many cold calls you need to make every day to succeed. The obvious problem with this is that if the salesperson is brutally honest with himself or herself about closing ratios and cold call to appointment ratios, the number of cold calls required to succeed is unrealistic and there simply arent enough hours in the day to get them done. Figure in time needed for presentations, driving, proposal generation, and so on, and there definitely arent enough hours in the day!

20

The major problem with cold calling, even if it does work for you in terms of getting qualified appointments, is that cold calling fails to use the extremely powerful force of leverage. You can only be in one place at a time or making one phone call at a time and can make only so many cold calls in a day, week, or month. Your potential becomes finite and becomes strictly limited by the amount of time you have available to make cold calls.

Cold calling makes timing work against you, not for you. Do doctors call you at random times to ask if you happen to be sick and therefore in need of an appointment? Do dentists call you unexpectedly to ask if you have a toothache and therefore need dental services? Do auto mechanics call you without warning to say, Lets choose a mutually agreeable time for you to bring your car in so we can examine it and determine if you are in need of our services? Of course not. These examples may seem silly but in reality, your cold calls seem equally as silly to the people you call who do not need your products or services. The very thought of getting these kinds of calls may make

21

you laugh, but this is exactly what prospects think when you cold call them. If youre lucky enough to find a prospect who really is in a buying mode for whatever it is that youre selling, chances are theyve already called some of your competitors for proposals or price quotes and the odds of your getting the sale are already stacked against you. In addition, because cold calling destroys your status as a business equal, you automatically appear inferior to your competitors.

Cold calling instantly puts you in a negative light because prospects find cold calls to be intrusive, annoying, disrespectful of your time and downright bothersome. Businesspeople, especially those with enough importance and authority to wind up on prospect lists, are extremely busy people and the last thing they need is to receive ten cold calls during a stressful day from eager salespeople. Youre seen as a burden on their time, an annoyance, and a distraction from more important work.

Cold calling might get you into trouble. Here in my home state of Arizona, and in many other states, it is now illegal to

22

make a telephone cold call to either a business or a consumer if you do not hold a Telephone Solicitors License. At the very minimum, if you are somehow exempt from requiring the license, you must first obtain exemption status from the state, which is just as much of a hassle as simply getting the license. The bottom line is that you may face severe legal penalties if you make telephone cold calls without first going through miles of government red tape. Many businesses are so fed up and disgusted with cold-calling salespeople who ignore No Soliciting signs that theyre now calling the police when salespeople come in, in defiance of the signs, and I myself once narrowly avoided arrest when a prospect called the cops on me and I had to talk my way out of going to jail.

Cold calling destroys salespeoples attitudes. Of all the reasons Ive laid out, I think this one is the most important. Lets face it. Even the most annoying, overly-positive rah-rah sales trainers will readily admit that all salespeople hate cold calling! Its a basic fact of human psychology that forcing yourself to do something you hate doing will put you in a bad mood and instantly shift your

23

attitude from positive to very negative. Why, then, would anyone continue to do something that undermines your ability to sell at the most basic, subconscious level?

There are plenty of other reasons why

cold calling is dead and obsolete in our new economy. For now, Ill leave it at those and move on to the more sinister effects of cold calling, namely, the long-term effects it has on the companies that require it of their salespeople.

24

IV.

Is Cold Calling Dead?

25

Is Cold Calling Dead?

Is cold calling dead? And, if laws are being passed to put it to rest once and for all, how do we generate business from now on?

Opinions on the subject vary greatly

depending on the background of the individual. For example, most of the old-timers are vigilant in preaching their belief that the only possible way to succeed in the world of selling is to make no less than fifty calls each and every day. On the other hand, younger salespeople tend to become frustrated with this rather quickly and begin looking for more innovative ways to generate business.

I was just reminded of how ingrained this

cold calling belief is. I spoke with a friend who left a sales position with a major merchant processing back only a couple of weeks after starting. The reason? He was required to make a minimum of four hundred cold calls each and every week, and to prove that he had made his calls by bringing in business cards totaling four hundred per week. Now this is someone who is highly experienced, has been in sales for over two decades, and knows exactly how to generate qualified business without making four hundred cold calls each and every week. He decided to meet with his manager to discuss the strategies hed used in the past to become successful many of the

26

same strategies I teach with the hope that his manager would be open to them.

The managers response? Weve done it this way for forty years

and were not about to change now. That response, in my opinion, is the

reason were seeing record business bankruptcies today. The world and our economy have changed and are breaking into bold, uncharted territory. But the management of most business sales organizations insists on doing things the old way, even though the old way produces less and less in terms of results as time goes on.

The concept of Permission Marketing is slowly but surely gaining in popularity as the old idea of Interruption Marketing continues to become less efficient and more wasteful. There are several reasons why cold calling in particular has become less effective as we move further into the Information Age. It destroys your status as a business equal. It forces you to spend time with unqualified prospects while the qualified ones are buying from your competition. It annoys people and is increasingly considered to be rude and disrespectful. Moreover, it is becoming illegal in more states and under more circumstances. But, most importantly, it destroys

27

salespeoples attitudes, and attitude is everything in sales.

28

V.

The Hidden Cost of Cold Calling

29

The Hidden Cost of Cold Calling

The majority of sales organizations today continue to mandate cold calling by their salespeople. They do this despite the fact that cold calling has the lowest return of any and all prospecting methods. Managers like to require cold calling because it is done at the salespersons time and expense, not the companys. They believe that the ability to scrape up some business here and there, on the salespersons time, is enough to justify the ongoing activity of cold calling. What they fail to realize, however, is the dangerous hidden cost of cold calling. Im talking about the effect that cold calling has on salespeople. In my experiences in working with hundreds of companies doing sales training, sales planning, and coaching individual salespeople, Ive learned a few basic truths that are valid one hundred percent of the time. First of all, companies that require cold calling have the highest turnover of all sales organizations. Seventy-five percent turnover per month is not uncommon in these you must cold call offices. Such high turnover is disastrous to a companys long-term profitability. Companies that conduct a solid marketing program and provide qualified leads to their salespeople have virtually no turnover at all.

30

In the world of salespeople, the number one reason why salespeople quit their jobs is the requirement to cold call. And, as you can probably guess, the number one reason why top producers choose to stay with their employers long-term is because those employers are providing qualified leads and therefore there is no need at all, let alone any requirement, to cold call. I personally quit several jobs because of the mandatory requirement to cold call, regardless of whether or not I was already at my numbers. On the contrary, I stayed at one particular position for several years and was very prosperous there simply because my sales manager was against cold calling and worked hard to make sure we always had a decent supply of incoming leads. Not surprisingly, we were the most rapidly expanding branch in the entire country in terms of revenue during my tenure there. Sales organizations that wish to attract and keep the desirable, most professional top producers out there need to start with the basics and implement a solid marketing plan that will generate a consistent supply of hot leads for the sales force. Anything else will lead to a lack of exceptional talent and will cause very high turnover on the sales staff. A requirement to cold call repels great talent and

31

only attracts inexperienced salespeople who wont bring in the big numbers every manager needs and desires. A good marketing system, and the consistent stream of qualified leads it generates, attracts and keeps top sales talent for the long term.

32

VI.

How To Stop Chasing Prospects Forever!

33

How To Stop Chasing Prospects Forever!

Perhaps the biggest challenge faced by salespeople is the problem of chasing prospects. In this chapter Ill explain exactly why that happens, and how you can avoid it entirely and make prospects chase you instead.

I once heard Donald Trump say, "In selling, you must never appear desperate. As soon as you look desperate, it's over."

A friend and I were talking about the dynamics of a cold call the other day. When we make that call, we usually hope and expect that the prospect will be receptive to hearing what we have to say. However, salespeople face increasing resistance to cold calling, as well as increasing flakiness on the part of prospects who do meet with them. Instead of thinking, "Ok, this may be interesting," here's what most prospects actually think when they receive a cold call: "Great. You don't know me and I don't know you. You have no idea what my goals are. You don't even know if we need what you're selling, and in spite of all that, you've decided to waste my time anyway with this call."

What is increasingly becoming the norm is to be rejected by the good, solid prospects everyone wants, and to get appointments with

34

flakey time-wasters who will never buy. Flakiness, in particular, is a growing problem thanks to the fact that prospects are increasingly bombarded with endless advertising as well as endless salespeople. When you consider the fact that few prospects actually have the courage to say "no" and instead choose to blow us off and make excuses, it becomes even more frustrating.

One of the main themes I try to teach salespeople is two-fold: 1) You must be supremely confident. 2) You must get into the habit of qualifying prospects OUT instead of merely qualifying them. It is the appropriate response to ever-increasing flakiness and evasiveness on the part of prospects. It's our way of communicating to them, "If you can't take the heat, get out of the kitchen" in a non-verbal way. The idea of taking the lead and qualifying prospects out is scary at first, and as a result most salespeople aren't willing to do it, but it will save you lots of otherwise wasted time with prospects who aren't really serious, and will free that time up to be spent with prospects who are going to buy.

It's important to start all sales relationships from a position of power, and you do this in two ways: 1) Through your outward presentation. This is easily accomplished by acting very professional and dressing better than your prospects, rather than taking the

35

wrong advice of "dressing like your prospects." It's easy to say "no" to someone with whom you're comfortable, but much more difficult to say "no" to someone who intimidates you. 2) Through your actions. A great example is someone who is squirrely about agreeing to an appointment with you. In many cases, these are the people who finally agree to meet with you but eventually blow you off without buying. When I found myself in this situation, I discovered a great way to overcome it. It goes back to the idea of confidence bordering on mild arrogance, and puts you in the position of power. When you're getting the runaround, something like "Well, we'll let you know when we have time to pencil you in," say something like, "Great, let me know. I'm very busy so I need to know either way - NOW." This will get rid of time-wasters, and with serious prospects, will clearly communicate that you're a serious businessperson, should be taken seriously, and will not tolerate having your time wasted and otherwise being disrespected. It will also set you apart from the competition and greatly increase your chances of getting the sale.

As time goes on and I work with more salespeople, I'm realizing that this idea of being powerful really overrides everything else, and once you can pull it off, it overshadows everything. You can do a poor job of presenting and selling and yet this can carry

36

you all by itself. For anyone who is doubtful about this idea of presenting yourself as overconfident and even a little bit arrogant, I'll go back to Donald Trump since he's famous for his giant ego. I saw him on Larry King, and as they were taking live calls, one of the callers openly confronted him about his massive ego and Larry King jumped on and questioned him about it as well. Donald Trump simply replied, "Have you EVER met a successful person who didn't have a big ego?" After some hemming and hawing from King, Trump repeated the question to him, and King finally said, "No."

Moving on from the idea of avoiding an appearance of desperation and creating an appearance of power, there's another very good reason as to why prospects who are uncovered via cold calling are flakey. This one has nothing to do with us and everything to do with a particular prospect's mindset and level of sales vulnerability to begin with.

Most of us have noticed, at some time or another, that prospects who absolutely refuse to take cold calls and have giant "No Soliciting" signs plastered on their front doors tend to be the easiest to sell to once you manage to get in front of them. There are a few popular theories as to why this is so, the most common one being the idea that since so few salespeople get through to begin with, there is little competition and therefore a better chance

37

of getting the sale. However, I know the real reason behind this.

The reason those people are so defensive against sales pitches and have all those "No Soliciting" signs is quite simple. They are AFRAID of salespeople. They know very well that they have a very difficult time saying "no," and as such they are highly vulnerable to sales presentations and know very well that if a salesperson gets to them, they'll probably buy whether they need to or not.

(I never figured this out until I spoke with an expert on social dynamics who has studied the subject of human social interaction in depth. He explained that the people who act the coldest and most unapproachable in social settings do so because they're overly vulnerable to being seduced and falling in love and therefore are afraid of what someone's advances may lead to.)

Now that we've explained why those people are the easiest to sell to, let's look at the opposite type of prospect: those who willingly take your call and willingly agree to set an appointment.

If those who are easily sold won't take your call and won't agree to meet with you, why would someone be so agreeable to taking your call and meeting with you? Exactly. It's

38

because they have no fear of salespeople. They know right from the start that there's little chance of them being sold. Their openness and receptiveness to your call puts us off-guard. We think we have a great shot at a sale, but in reality we're meeting with someone who is 99% certain not to buy.

Since the people who willingly take cold calls usually don't buy, and the people who usually buy don't take cold calls, what's the solution? Since those who are easily sold almost always meet with salespeople only when they've called the salesperson first and not the other way around, you must get your message across to these people in creative and effective ways other than cold calling.

To those highly desirable prospects who are easily sold, all salespeople seem the same. The only way to win with them is to separate yourself from the rest of the crowd.

The first way to accomplish this is to be that powerful businessperson who needs nothing and deserves respect. I think most of us were taught and have gotten into the habit of treating prospects as superiors and as a result we tend to do whatever is convenient for prospects and otherwise kiss up to them. We are used to rearranging our schedules just to meet with that one prospect. Stop this, and start expecting your prospects to treat YOU

39

with the respect and consideration you deserve as someone who is not only a business equal, but who has the knowledge and wisdom to help them and improve their businesses and their lives.

The second way to stand out is to stop cold calling. Nothing will stereotype you as a typical salesperson faster than a cold call. The way to win with prime prospects is to get your message across to them in ways that don't use cold calling. You'll get in front of the easy sales, and you won't have any competition once you get there.

40

VII.

Increase Your Sales Today With The Kiss Test

41

Increase Your Sales Today with The Kiss Test

We've all heard the term KISS at one time or another - "Keep It Simple, Stupid." However, the majority of salespeople violate this basic principle more often than not.

Let me start with some examples of what I'm talking about. At one position I held, I sat next to someone who could have been a top salesperson. He and I both operated much the same in that rather than cold call, we ran our own personal marketing programs to generate leads and simply took the calls that came in as a result. The problem is what he did with the calls. When someone called me, ready to buy, I immediately went into closing the deal and making arrangements to either come out with the paperwork or to fax it over. He, on the other hand, went into a full-length company story and a lot of other information that he absolutely should not tell a qualified prospect unless they ask for it. The end result is that people who called ready to sign up for one of our services lost interest and didn't buy anything at all.

Another example is what happens every time I try to make a business purchase. Here I am, saying "Yes, I'm going to buy," and the sales rep launches into a company story about how long they've been in business, who their

42

big clients are, and on and on. Lucky for these salespeople, the product usually sells itself and I still buy. However, I'm willing to bet that a lot of people don't. Nothing is more frustrating than picking up the phone saying, "Hi, here I am ready to buy," and having some rep go into a story bragging about how great the company is and all that they can do. That comes off as pure arrogance to a business owner. What's more, talking about your big enterprise clients alienates most small business owners. They assume their needs will be placed second to those of the big dogs and that they'll be treated as just a number when calling for service.

I think most training is at the root of this massive problem. Every course I've taken has gone through the steps of a sale. The problem is, what if all the steps don't take place? Consider "objection handling." When I was working for that company I mentioned earlier, many of my prospects had no objections because my marketing pieces took care of them in advance. By assuming that each of these steps are going to take place, a lot of salespeople will cause something to happen when it really shouldn't have to begin with. If a prospect doesn't come up with any major objections, don't give them a reason to!

I've seen a lot of managers require their reps to fill out a "lead sheet" that documents

43

each step of the sale. This assumes that each of the steps will happen when they may not. If you're required to maintain these types of records, skip anything that doesn't happen naturally. Don't induce a prospect to enter a selling phase that may not only be unnecessary, but may cause you to lose the sale entirely.

Use the KISS test when you're selling. Always ask yourself if what you're doing is actually necessary. Believe me, you'll save yourself a lot of wasted time and lost sales by doing so. I did.

44

VIII.

The Cold Calling Conspiracy

45

The Cold Calling Conspiracy

A conspiracy exists in the world of selling. A cold calling conspiracy.

What Im talking about is the requirement by most sales organizations to make cold calls on your time and at your expense. They say that cold calls equal appointments equal sales, but thats not true anymore. All sales managers are guilty of teaching it, believing it, and using it. Increase your activity and increase your income are the mantra. Were told to do the sales math to motivate ourselves. Have you heard this one? If you make five hundred dollars commission per sale and it takes five appointments to get the sale and twenty calls to get an appointment, then each cold call is worth five dollars in your pocket.

Did anyone ever really believe this?

Hey boss, put your money where your mouth is! If that were really true, companies would pay us the five dollars per call! They dont because that equation never works in the real world... for anyone. The simple fact is that we are only paid for completed sales, not for attempts. Directing salespeople to make more calls and increase activity is a weak excuse for a sales manager or trainer to justify his or her job. Cold calling is an expensive waste of your

46

time. The reason companies have you cold calling is because it is a waste of your time and your money, not theirs. You only make money when you sell something, yet over eighty percent of most salespeoples time is spent looking for someone to sell to.

The bottom line is that we, as salespeople, cannot afford to continue fooling away our time on low-percentage activities like cold calling. Its a way for companies to save money at your expense. We must focus our attention on activities that get real results in this new Information Age economy, and the effectiveness of cold calling fell dramatically when we left the old Industrial Age and entered this bold new era. Forget cold calling and learn how to market yourself intelligently, systematically, and automatically. Self-marketing is the key to success in todays selling environment and the secret of all those top producers who obviously dont cold call and wont tell you what it is theyre doing to make those huge numbers every month. Remember, Napoleon Hills great work is entitled Think and Grow Rich, not Work Harder and Stay Broke. Dont become a victim of the Cold Calling Conspiracy - learn to market yourself successfully and join the elite club of top producers. I did it and you can too.

47

IX.

Conflict vs. Cooperation In Selling

48

Conflict vs. Cooperation In Selling

There are two main types of communication that take place in selling situations: conflict and cooperation. Which type of communication youre using will have a profound impact on whether or not you get the sale.

Conflict takes place as the result of the vast majority of sales processes and especially as the result of those taught in traditional sales training, which usually goes as follows: The salesperson initiates the sales process through a cold call. Because the prospect does not expect or anticipate the call, sales resistance automatically exists and the salesperson is forced to overcome it. This is conflict. When the first appointment takes place, the prospect again has his defenses up in anticipation of a pushy sales pitch. As a result, frivolous objections are thrown out that the salesperson must overcome. More conflict. At the end of the appointment, the salesperson must secure a time for a second appointment in order to present a proposal. The prospect says to call next week for a time, but the salesperson wants to secure it now. Even more conflict. The second appointment takes place, the proposal is presented, the salesperson asks for the order, and now the prospect really has objections. Conflict. The salesperson works to overcome them and then uses a sleazy

49

technique such as the infamous alternate close to again ask for the order. Conflict at its worst.

Now lets take a look at a sale where the state of mind is not conflict but cooperation:

The prospect learns of the salespersons offering through the salespersons thoughtful, organized self-marketing plan. The prospect contacts the salesperson and asks for a meeting, to which the salesperson of course agrees. Cooperation. During the first appointment, the prospect willingly explains the need that exists and the salesperson listens and takes down all pertinent information. They mutually agree to a time to review a solution. Cooperation. The day for the proposal appointment arrives and the prospect is excited to finally learn of a way to solve his problem. The salesperson presents it and the prospect agrees that it looks great. More cooperation. There is no need for the salesperson to engage in any ethically questionable closing tactics because the prospect sees the value in the proposal and simply buys. Cooperation at its finest.

Ask yourself, do your sales processes look more like the first or second example? If youre experiencing conflict instead of cooperation with your prospects, perhaps its time for you to drop the old methods of prospecting and selling and learn a new way

50

that fosters goodwill and cooperation. The answer is self-marketing. Instead of annoying people with cold calling and pushing them to buy with tacky closes, it will induce qualified prospects to call you and simply agree to buy.

51

X.

Why Funnels and Forecasts are Absolutely Worthless

52

Why Funnels and Forecasts are Absolutely Worthless

If there is one mainstay in virtually every sales office, it would have to be funnels & forecasts. Sales managers swear by them; however, Ive found that they frequently do more harm than good.

Funnels seem like a good idea in theory. The problem with funnels, however, is that they practically scream micromanagement. Funnel reviews strike terror in the hearts of salespeople. They scream the words probation and performance improvement plan. Sales managers who wish to succeed need to learn some basic psychology, especially the principle of autosuggestion. Doing so will make it very clear as to why the very sound of the word funnel instantly changes salespeoples attitudes from positive to negative and has very bad effects on sales performance.

Forecasts also make sense in theory. After all, accurate forecasting is a necessity for good business planning. The key word, however, is accurate. If you believe that an accurate sales forecast has ever existed then Ive got a nice bridge for sale just for you. Salespeople simply do not submit accurate forecasts. Most salespeople grossly overestimate their forecasts in order to

53

appease their managers. After all, would you, as a salesperson, want to face the wrath of submitting a forecast that falls short of expectations? This is why dead deals and phony deals tend to outnumber the real ones on forecasts. On the other side of the coin, some salespeople underestimate forecasts simply because they dont want a manager asking, When is this one going to sign? When is that one going to sign? An overbearing manager simply isnt worth dealing with so they leave good deals off the forecast.

The other huge problem with funnels & forecasts is that they force salespeople to manage their activity on a month-to-month basis. This results in the horrendous practice of slacking off at the beginning of every month, then working overtime at the end of the month trying to get enough deals signed to make quota. It just doesnt work in the real world. Successful top producers work in the present, not in terms of its the beginning of the month or its the end of the month. Top producers are consistent because today is neither the beginning nor the end of the month. Today is today, and that means doing the same thing today that they do every day to get the results they achieve.

Forget about funnels & forecasts. Manage with common sense instead and watch your sales results skyrocket.

54

XI.

If Cold Calling Works For You

55

If Cold Calling Works For You

I receive e-mails on a regular basis from people who state that cold calling is working perfectly well for them and that theyve become quite successful by it. That's fine - as I've always said, if it works for you, then keep doing it. My materials are for people who either are not getting results from cold calling, or who simply do not enjoy it and do not want to do it anymore.

If you feel that cold calling is working just fine for you, this chapter is for you. The problem with being satisfied with the results of cold calling is that you fail to see cold callings biggest flaw and why it imposes strict limitations on your sales production.

Heres something to think about. Even if cold calling is working for you, you're failing to use the amazing power of LEVERAGE to your advantage. What I'm getting at is the fact that as a cold caller, you can only make one call at a time or knock on one door at a time. Add into that the fact that you must also fit appointments and other work such as generating proposals into every business day, and your ability to make a large number of quality cold calls diminishes rapidly.

Heres the pattern I typically see and that I experienced myself with people who

56

rely on cold calling for generating business, and who feel that its working for them: Month 1: Sales are down. Most free time is spent cold calling. Leads are generated and plenty of first appointments take place but the salesperson falls short of quota for the month. Month 2: Numerous second appointments take place and proposals are presented. The salesperson spends lots of time working to close sales and is successful. Quota achievement is far in excess of 100% this month. Month 3: The salesperson spends plenty of time on customer service issues this month, and following up with all the customers who bought last month. After all, its normal to be busy with these issues after a huge month. By the end of the month, everything is taken care of, but sales are in the gutter and far below quota this month because most time was spent taking care of all those issues, and to make matters worse, the pipeline is now empty and there are no more prospects to work on. The cycle starts all over again with month 1. As you can see, this cycle of cold-hot-cold guarantees failure and is one of the key reasons why cold calling rarely, if ever, results in success. If anything, it allows salespeople

57

to make quota every third month, barely avoid probation, and therefore keep their jobs.

By contrast, systems of self-marketing allow you to use the power of LEVERAGE. Let's say you do well at cold calling and continue to make, say, 30 calls a day. What if you could put systems into place that effectively made an additional 300 calls per day while you're free to do other things? If your 30 calls per day generated one hot lead, wouldn't a system that performs the equivalent of 300 calls generate 10 hot leads in a day?

This is the power of leverage, and this is where those who rely solely on cold calling are missing out. If cold calling works for you then keep it up, but doesn't it make sense to add to it and increase your number of leads exponentially? Then you'll be so busy with all the appointments that you really will drop cold calling after all you wont have time for it anymore with so many people calling you, ready to buy!

58

XII.

If No Cold Calling, Whats The Alternative?

59

If No Cold Calling, Whats The Alternative?

One thing I find to be absolutely tragic in the world of selling is that very few salespeople even think its possible to do anything other than cold call to generate leads. It has been so ingrained for so long that cold calling is the one and only way to drum up new business that not only do salespeople fail to look for alternatives to cold calling, they reject outright the idea that alternatives even exist, let alone the fact that alternatives to cold calling happen to be far more effective. In the last chapter, If Cold Calling Works For You, I touched on the significance of leveraged systems of self-marketing to generate leads.

Leveraged systems of self-marketing are the alternative to

cold calling.

Self-marketing is automatic. Once its set up, it runs on autopilot.

Self-marketing induces people to

call YOU, ready to BUY.

60

Self-marketing eliminates the need to cold call and increases your sales

numbers exponentially.

I typed the above statements in bold face to emphasize their importance. The reality is that cold calling is dead. Cold calling and the old-school pushy style of selling are out the style I refer to as conflict in a previous chapter. Self-marketing gets rid of the old conflict-inducing sales methods and brings cooperation to selling. Another very, very important aspect of using self-marketing is something I discussed in an early chapter the fact that cold calling destroys your status as a business equal and makes you look like a beggar. This is a hard truth to face, but the reality is that prospects really do view cold callers as beggars. By contrast, when a prospect calls a salesperson first instead of the other way around, the prospect sees the salesperson as an expert, not a beggar. When you make a cold call, your beggar status comes from the fact that you are the one who is in need and who is out to get something. When the prospect calls you first, on the other hand, the prospect is the one who is in need. You now have the power and the authority to fulfill that need.

61

By inducing prospects to call you instead of you calling them first, your value in the eyes of the prospect goes up exponentially. What amazed me more than anything once I figured all this out was how easy the sales process became when I was able to finally get prospects to call me and stop cold calling them once and for all. Not only did I eliminate the drudgery of cold calling day in and day out, but I also took the drudgery out of the entire sales process. I was no longer pushing and trying to sell and close people. They were simply going ahead and buying from me! This is due to the fact that when you end the cold calling madness and begin to use self-marketing, you begin to attract the most qualified leads you can possibly get. Youll start working exclusively with prospects who are ready and eager to buy! Not only does the activity of cold calling go away, all of the conflict and negativity of the sales process go away with it. Youll find yourself becoming happier and more positive in general by eliminating those sources of negativity from your life entirely. I like to use the words buying and selling to define the cold call sale and the self-marketing sale. The cold call sale is selling. The whole time, youre selling,

62

pushing, convincing, overcoming objections, and ultimately closing, sometimes using sleazy tactics such as the infamous alternate close. The self-marketing sale, however, is most definitely buying. The prospect comes to you. The prospect freely explains their problems and needs and looks to you for a solution. The prospect respects you and your opinions and judgment when you present that solution, and, best of all, the prospect willingly buys! No need to push or close! Self-marketing sets you up to simply give them what they desire, and thats exactly what happens.

63

XIII.

Conclusion

64

Conclusion

Thank you for taking the time to read this brief e-book. If you downloaded this book because you hold the opinion that cold calling works and is the best way to generate new business, hopefully you kept an open mind while reading and, even more hopefully, were swayed by my arguments against cold calling and will now be willing to at least consider alternatives. I especially hope this is the case if you are a sales manager who, up to this point, has mandated cold calling as a requirement of your salespeople. The best manager I ever had was the one who set out on his own to look for alternatives for us, and we all became very prosperous as a result. We also developed a tremendous sense of loyalty to that manager. I hope youll do the same for your salespeople. If you downloaded this book because you are a salesperson who is sick and tired of cold calling and the dismal results it brings, and are looking for alternatives, you now know that they exist and are out there, ready and waiting for you. Youll also appreciate my companys mission statement:

To forever rid the world of cold calling, and to save both salespeople and consumers alike from its horrors.

65

When I began this journey with the publication of Cold Calling Is A Waste Of Time: Sales Success In The Information Age in early 2003, I was hoping to share my ideas with the result of making some extra money for myself on the side. Little did I know that it would be so successful as to allow me to quit my job almost immediately and pursue this mission of educating salespeople and sales managers worldwide full-time. Now that Ive been able to do just that, Ive become extremely passionate about putting an end to the cold call nonsense once and for all. It pulls on my heart to hear from salespeople day in and day out who are dealing with the misery of failing by cold calling because I went through it myself and remember how painful and difficult it was to deal with the pressure every day, have no job security, and have no money to enjoy the finer things that life has to offer. All because of overbearing, ignorant managers and trainers who insisted that I cold call and do nothing else to generate business, and who forced me to turn in business cards and call logs as a mandatory requirement. Im also overjoyed when I read the thousands of success story e-mails that have come in from those who have taken my techniques, put them into use, and succeeded. There is nothing better than hearing from someone who is supporting a family, from a single mom, or from someone new to sales

66

who had previously been struggling, working long hours, only to miss quota, then to put my system into use and attain very high sales numbers while actually working less than they had previously. I regularly hear from people who thank me not only because theyre making more money, but more so because theyre working less hours and have more time to spend with their families. It was this continuous flow of success stories that compelled me to view this book writing business as not just a way to make money, but as a very worthwhile mission to help the millions of salespeople worldwide who do not have happiness in their lives and careers all because of cold calling. Knowledge and education are all that are necessary to replace cold calling with a better way, and I consider myself very fortunate for having the opportunity to provide that knowledge. Thank you so much for taking the time to read this. If Ive piqued your interest and youd like to move forward with obtaining the knowledge of how to stop cold calling forever, please visit my site at www.nevercoldcall.com.


67

About The Author:

Frank J. Rumbauskas, Jr. spent several difficult years in sales, frustrated and convinced that there must be a better way than the familiar chants of "cold call more" and "increase your activity" so frequently heard from well-meaning but otherwise clueless sales managers. While working as an account executive for a Fortune 100 company in the mid 1990s, Frank was mentored by another A.E. who went from entry-level sales to upper management in 3 years, something unheard of in this particular organization. This top producer revealed a very basic principle to Frank. He immediately applied it and suddenly began to achieve tremendous results. That simple principle forms the basis of this entire program. Frank has taken it, perfected it, designed systems around it, and is now able to apply it to any and all sales jobs. He went on to successfully start and run two sales agencies based on these principles before moving into sales training. His "Cold Calling Is A Waste Of Time" book/CD program has become an international hit, now sold in over 30 countries and used successfully by countless salespeople worldwide. In addition to his career as an author, Frank owns an insurance agency specializing in mortgage protection life insurance, and is a major stockholder of an emerging wireless internet provider.

68

Produced and Distributed by:

FJR Advisors, LLC 20701 N. Scottsdale Rd., Ste. C5-290

Scottsdale, AZ 85255 United States

For more information or to order Cold Calling Is A Waste Of Time, or to

subscribe to the authors free newsletter, please visit


You may also order Cold Calling Is A Waste Of Time by calling

(602)231-6711 24 hours a day, 7 days a week.



69

You may distribute this e-book freely, sell it, or include it as

part of a package as long as it is left completely intact and unchanged and delivered via

this PDF file.

This free-distribution e-book is Copyright 2005-2006 by Frank J. Rumbauskas, Jr. and

FJR Advisors, LLC. All Rights Reserved.

ISBN 0-9765163-2-2

Published and distributed by: FJR Advisors, LLC

20701 N. Scottsdale Rd., Suite C5-290 Scottsdale, AZ 85255

United States of America

cold calling

Documents

sales success

director of sales

sales programs

sales quota

sales calls

kind of sales

year sales career

bestseller cold calling